16 



HARDWOOD RECORD 



November 10. 1920 



might be expected until after the new year. Therefore, with gen- 

 eral inactivity in normal directions, the obviously wise thing is to 

 turn especial attention to house cleaning and to preparation for 

 tlie upward swing of the pendulum. 



The chair men have marked an intelligent course. 



Harding's Attitude Toward Business 



THE BUSINESS INTERESTS OF THE COUNTRY have reason 

 _ ^ to expect that under the Harding administration, they will 

 enjoy the fullest opportunity to function with the minimum of 

 governmental interference. Pre-election utterances made by the 

 President-elect in reply to questions concerning business problems 

 put by the 'System magazine, very clearly indicate this. "Govern- 

 ment's highest function is to serve business and to give it the fullest 

 opportunity for righteous activity," said Mr. Harding. "Business 

 is wholly a private function. It is founded on the genius and 

 enterprise and efficiency of those who conduct it. We have drifted 

 in later days to a good deal of unjustified and unnecessary and 

 unhappy interference of Government in private business. About 

 the greatest service the Government could render at the present 

 time is to take its' hands off of legitimate and honest enterprise 

 and tell it to go ahead and do the most and best that is possible. 

 That is what makes a great commercial and industrial nation. ' ' 



It is easy to infer from this that the influence of the next presi- 

 dent will be exerted to eliminate the constrictive practices under 

 which business now chafes and that the whole attitude of the 

 administration will be liberal toward business. The attitude of the 

 retiring administration has apparently been one of suspicion and 

 prejudice, a stern and repressive policy being pursued. This atti- 

 tude will, of course, be completely reversed by Harding. 



It is to be hoped that busines will be able to enjoy this unshack- 

 ling temperately and not attempt to abuse its privileges. The enjoy- 

 ment of privilege is often made short-lived because of the tendency 

 of the beneficiary to presume upon it and seek more than he is 

 entitled to. The incontinent attitude of certain business interests 

 in the past, set in motion the movement for regulation of private 

 enterprise, which the last Democratic administration seems to have 

 carried to an extreme. 



Now we are to witness the reaction from that extreme and it 

 would indeed be a happy result should a balance be struck under 

 the Harding administration which would find business pursuing its 

 fair and legitimate functions with only the most necessary regula- 

 tions from the Government. 



One of the most interesting reforms from the standpoint of the 

 business man, which the President-elect promises, is that of the 

 excess profits tax. He has said that the "excess profits tax, in my 

 judgment, is unfair and the law should be repealed. It is unfair 

 to business men and it is unfair to consumers." He contends that 

 the law is too complicated and that it puts a tax on genius and 

 enterprise, which is inimical to the commercial and industrial devel- 

 opment of the country. A large percentage of the funds realized 

 by the Government through the excess profits tax is still necessary. 



but Mr. Harding believes that a tax on gross sales of going con- 

 cerns, of perhaps 1 per cent or even 1% per cent, would be the 

 better way of raising the necessary mouej'. This sort of tax he 

 estimates, would raise sufficient funds, if the expenses of the Gov- 

 ernment are cut $1,600,000,000 to $2,000,000,000, as he believes they 

 will be through operation of the budget system. "This could not 

 apply to banks and insurance companies, and it would have to be 

 understood that the measure would not include the income received 

 by wage earners, agriculturists, salaried men and small business 

 men, who should be exempt. Under a law of this sort every business 

 man would know definitely at the close of the year exactly what 

 he would be called upon to pay to the Government. ' ' 



Mr. Harding also believes in making the Government budget 

 system "budget." He does not believe in the principle of the 

 industrial court to the extent that it should settle disputes arising 

 between the employers and employees in private enterprises whose 

 operations do not directly affect the well being of the public. He 

 does believe, however, that machinery should be set up which will 

 promptly and thoroughly prevent strikes or lockouts in such great 

 public industries as transportation and coal mining. 



In short, it appears that his policy toward business is one of the 

 least regulation consonant with honesty and the well being of the 

 people. 



There Is Logic in This Argument 



Entirely without bias in the matter, Habdwood Eecokd recom- 

 mends that consuming buyers give consideration to the following 

 statement, which reflects a thorough appreciation of conditions in 

 the lumber field and an uderstanding of the economic factors in- 

 volved: 



"We all know that prices fluctuate according to supply and de- 

 mand. The demand for lumber during the past few months has 

 been extremely light, stocks at consuming points have been greatly 

 reduced and many hardwood mills in our section have either cur- 

 tailed or stopped production entirely. 



"It is to the interest of both manufacturer and consumer to keep 

 production up, because this is the only way costs and prices can be 

 kept down. Selling prices are now very near the cost of production; 

 this situation will force further curtailment, which in turn will 

 make for abnormal prices when buying is revived. 



"We suggested during the peak of demand and high prices that 

 purchases be limited to immediate needs, ouc; desire being to help 

 bring about a market, stabilized on an equitable; basis; this would 

 be advantageous to you and to us. With the same idea in mind we 

 now call to your attention the fact that hardwood lumber prices 

 have been reduced, on an average of 35 per cent mill run, before 

 the notable reductions were announced on other commodities. 



' ' Normal purchasing will give you a low average of prices for 

 the next few months; it will enable mills to produce normally and 

 economically, and will prevent excessive price advances when gen- 

 eral business improves. 



"We submit this thought as a conservative business policy and 

 not for the purpose of encouraging speculation." 



Table of 



REVIEW AND OUTLOOK: 



General Market Conditions 15 



Consider the Ways of the Chairmen 15-16 



Harding's Attitude Toward Business 16 



SPECIAL ARTICLES: 



Labor Supply Now in Excess of Jobs 17 



"Dixie" Southpaw Wins Golf Title 18-19 & 22 



What the Safety First Movement Has Done for Us 20-21 



Cheiir Industry to Slump Until Jan. 1 21 



Advantages of Trade-Marked Lumber 23 



Trucks Haul Mules to Walnut Groves 24 



When Lumber Is Ready to Be Taken from the Kiln 31 & 42 



CLUBS AND ASSOCIATIONS: 



Miscellaneous 30 & 47-48 



NEWS FROM THE NATIONAL CAPITAL: 



Miscellaneous ■: 26 & 28 



Contents 



WITH THE TRADE 30 



HARDWOOD NEWS 48-54 



HARDWOOD MARKET , 55-58 



ADVERTISERS* DIRECTORY 59 



CLASSIFIED ADVERTISEMENTS 60-62 



HARDWOODS FOR SALE 63 & 65-66 



SUBSCRIPTION TERMS: In the United States and Its pOBsesslona, and 

 Canada. $2.00 the year; In foreign countries, $1.00 extra postage. 



In conformity with the rules of the postofl^ce department, subscriptlODB 

 are payable In advance, and In default of written orders to the contrary, 

 are continued at our option. 



Instructions for renewal, discontinuance, or change of address, should 

 be sent one week before the date they are to go Into effect. Both old and 

 new addresses must be given. 



Both display and claselfled advertising rates fumisnea ^p^a application. 

 Advertising copy must be received five days in advance of publication date*. 



Entered as second-class matter May 26, 1902, at the poatofflc* at Chicago, 

 ill., under act of March 9 18^70. 



